Nigeria has announced a significant policy shift concerning mining licenses, stating that new licenses will only be granted to companies that present plans for local mineral processing.
This development aims to enhance the value extracted from Nigeria’s solid mineral deposits and aligns with the country’s efforts to boost its economy.
According to a government spokesperson cited by Reuters, this change signifies a departure from Nigeria’s historical practice of exporting raw materials.
It reflects a broader trend across Africa, where governments are prioritizing local value addition from mineral resources.
To incentivize investment in the sector, Nigeria plans to offer various benefits to investors. These incentives include tax exemptions for mining equipment imports, streamlined processes for obtaining electricity production licenses, full repatriation of profits, and enhanced security measures.
Segun Tomori, spokesperson for Nigeria’s Ministry of Minerals Development, emphasized the importance of reviewing investors’ plans for establishing processing facilities and adding value to the Nigerian economy. However, no specific timeline was provided for the implementation of these measures.
